Roffensian wrote:
You're both right - 40% gross profit margin on msrp, 66.67% return on an investment of $6,000.
Now, back on topic......
Now, back on topic......
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| Author: | bacardi [ Thu Sep 16, 2010 9:09 am ] |
| Post subject: | AD Cost |
anyone here know what percent of the retail the watch costs ADs example watch retails at 10,000 ad pays breitling 6,000 so they make 40% |
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| Author: | Roffensian [ Thu Sep 16, 2010 9:14 am ] |
| Post subject: | Re: AD Cost |
Multiple threads on this already. Always used to be 55% in most jurisdictions, recently increased to around 60% in the US, but as I say every time this comes up, that 40% has to cover the 20%+ discount that everyone expects, plus commission, salary, utilities, rent, inventory, taxes, corporate overhead, profit, etc, etc, etc. |
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| Author: | jadanf [ Thu Sep 16, 2010 9:16 am ] |
| Post subject: | Re: AD Cost |
Roffensian wrote: Multiple threads on this already. Always used to be 55% in most jurisdictions, recently increased to around 60% in the US, but as I say every time this comes up, that 40% has to cover the 20%+ discount that everyone expects, plus commission, salary, utilities, rent, inventory, taxes, corporate overhead, profit, etc, etc, etc. Agreed. In reality, it doesn't matter what the cost is. Authorized Dealers have built relationships with companies like Breitling to allow them to make money, not for us to figure out the 'secret' and try to squeeze all their profits out of them. |
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| Author: | bacardi [ Thu Sep 16, 2010 9:31 am ] |
| Post subject: | Re: AD Cost |
yeah I was just wondering because I wondered what breitling themselves charge people. In my trade of business, the distributor or AD makes all the profit, not the manufactuer thanks for the feedback |
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| Author: | mfserge [ Thu Sep 16, 2010 9:44 am ] |
| Post subject: | Re: AD Cost |
bacardi wrote: anyone here know what percent of the retail the watch costs ADs example watch retails at 10,000 ad pays breitling 6,000 so they make 40% Your math is wrong. In your example, if the AD pays $6,000 and it sold for 10,000 (full retail) that's not a 40% profit, it's a 66.6% profit on the initial investment of $6,000. If they gave a standard 20% discount then their profit would be 33.3% |
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| Author: | bacardi [ Thu Sep 16, 2010 10:39 am ] |
| Post subject: | Re: AD Cost |
uhhh, thats a GP of 40%, where you getting your percent from? lol YOUR math is wrong |
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| Author: | bacardi [ Thu Sep 16, 2010 10:41 am ] |
| Post subject: | Re: AD Cost |
uhhh, thats a GP of 40%, where you getting your percent from? lol YOUR math is wrong |
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| Author: | Roffensian [ Thu Sep 16, 2010 10:42 am ] |
| Post subject: | Re: AD Cost |
You're both right - 40% gross profit margin on msrp, 66.67% return on an investment of $6,000. Now, back on topic...... |
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| Author: | bacardi [ Thu Sep 16, 2010 10:44 am ] |
| Post subject: | Re: AD Cost |
Roffensian wrote: You're both right - 40% gross profit margin on msrp, 66.67% return on an investment of $6,000. Now, back on topic......
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